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Commerce ministry to hold govt-industry consultation to discuss IIP decline

12 Dec 2011 Evaluate

Worried over the sharp decline in the industrial output, the government has decided to call government-industry consultation. As per the statement issued by the commerce and industry ministry, Anand Sharma will hold government-industry consultation on the issue December 19, 2011, after returning from the World Trade Organization’s (WTO’s) ministerial meeting, which is scheduled on December 15-17.

The Index of Industrial Production (IIP) for the month of October fell -5.1% compared to 11.3% in same month of last year. This 28-month lowest level of IIP figure is because of significant decline in manufacturing output, which constitutes about 75% of the IIP, fell to -6% from 12.3% in the corresponding month of 2010.

From last few months, the industrial production has been experiencing decline because of the non-stop hike in Reserve Bank of India’s key policy rates, high inflation and unfavorable environment in global economy. Further, India Inc has also blamed government for the policy paralysis as the number of the important legislations and policy has been delayed because of the political disagreement.

Anand Sharma expressed 'deep concern over the sharp decline in industrial production, particularly in the fall of manufacturing, which are engaging the government's attention at the highest level'.

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